Entrepreneurship: 7 key secrets about modern entrepreneurs

Entrepreneurship: With many economies in the world struggling for whatever reason, studies and years of intense macroeconomic analysis depict that Entrepreneurship is undoubtedly what is required to drive many economies in Africa and even the world at large. Every business website or magazine one lays his hands on is likely to find an article in which a politician or an economist is stating how important entrepreneurship is to the nation and that we need more entrepreneurs to ensure economic growth and prosperity.

Why entrepreneurship became necessary.

In broadening my horizon regarding entrepreneurship, I realized entrepreneurship became important in contemporary life in 1987 to be precise. That was the year people began to regard entrepreneurship as a national asset in wealth creation, and not just for personal sustenance.

In 1987, an economist and author, David L. Birch published the findings of a longitudinal research he conducted at (Massachusetts Institute of Technology).

The study traced 12 million individual business establishments from 1969 to 1986. He gathered enormous primary data from Dun and Bradstreet (D&B), single-unit stand-alone companies; a store, a small plant, or a law firm.

In 1986 the establishments employed 95% of all nongovernmental workers in the United States. The complete files of D&B were tapped regularly during this time period. The files had information on employment rolls, age, and location of each establishment.

Birch’s study showed that small start-up firms were responsible for more than 80% of all new jobs created in the United States and that large corporations in fact decreased employment. Small firms are more likely to expand than large organizations.

Approximate percentages and general trends indicate that there are significant contributions of small firms to a country’s economy, including employment, innovations, and Gross Domestic Product.

Small firms are also more agile and focused on local development, whereas large corporations may have more bureaucratic structures and a broader global focus.

Developed countries have invested so hugely in entrepreneurship (small firms) purposely because of its positive contributions to the country’s economy.

The sad truth is that we mostly depend on larger corporations when the small firms are the ones actually doing the magic for individuals and the government at large.

Basically, if a large Organisation decides to create new jobs that would definitely take place through a new business unit, not a new firm.

To be blunt: large firms create new jobs through the formation of new business units. How many individuals can a bank absolve from the labor market if it decides to add up a product?

Statistics from the U.S. Small Business Administration have over the years remained fairly stable and the same holds for most Western countries; 99.5% of all firms in a country are classified as small firms. This holds for the United States, Australia, Chile, India, and Finland.

Entrepreneurial Environment

Regional agglomerations of business activities and communities exist everywhere and tend to be specialized to certain industries or ecosystems.

Birch’s study also showed that new firms, which take the place of older ones, tend to relocate and use a different workforce, and other resources such as needs of capital, transportation, governmental services, education, recreation, and energy.

This means in any given environment, entrepreneurship can be established, only when desire and tenacity meet sound and clear conscience.

Small firms and entrepreneurs are important for the economic development of regions and subsequent studies confirmed this finding as well.

Some of the best-known examples are Silicon Valley and Route 128 which became models for similar examples worldwide. We are seeing an entrepreneurial revival in Rust Belt cities like Detroit which have had to reinvent themselves.

Entrepreneurs: Born Or Made?

Entrepreneurship is a concept that goes beyond certain life phenomena. One could possess the required skills to succeed as an entrepreneur, but the desire to propel one to succeed even in the long run when it has taken almost everything from the person is something that defines success in any business setting.

With many countries realizing the positive impacts of entrepreneurship on the economy of a country, there are programs implemented by governments in many developed and even developing countries that assist individuals to start-up businesses.

We also must remember that success for many is not defined by money, but often by fulfilling another goal like Jonas Salk and his desire to eradicate polio. His focus was developing a safe and effective vaccine as rapidly as possible. He had no desire for personal profit. When asked who owned the patent to his vaccine, Salk said, “There is no patent. Could you patent the Sun?” His goals were not monetary but included founding the Salk Institute in La Jolla, California, which carries on his vaccine work even today. Some consider Salk an early social entrepreneur long before the term appeared in the media

Regardless of the government assistance and coaching, we still end up getting failed or unsuccessful entrepreneurs among these individuals selected for the program.

This is where another important feature of entrepreneurship comes in; the desire to do something is the basic force that determines success or failure.

Who is an entrepreneur?

Entrepreneurship is defined and explained in diverse ways regarding one’s expertise and interest. Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation.

According to the Global Entrepreneurship Monitor (GEM), there are some individuals who become entrepreneurs by necessity (no income, starving, etc.) and those who are opportunistic (exploit a need, market, invention, etc.).

It should be noted early on that the distinction between necessity and opportunistic entrepreneurs is not a pure one and includes a great deal of overlap. That said, there is increasing evidence that there is a significant increase in the number of new entrepreneurs who are starting their own businesses because they see an opportunity, not because they are out of work and unable to get a job (necessity entrepreneurs).

Entrepreneurial Mindset

Being an entrepreneur requires a certain mindset, a mindset that puts one ahead in almost all facets of a business organization. Entrepreneurs and successful entrepreneurs have a different mindset and attitudes. Research has found differences in the cognitive styles of entrepreneurs and that successful entrepreneurs have different entrepreneurial leadership styles. Some of these skills can be taught, so entrepreneurial education is not a bad thing.

Entrepreneurship is an attitude toward life as much as it is an ability to create and then lead a firm. Having said that, it is therefore extremely vital for one to

understand how entrepreneurs think since entrepreneurs appear to perceive their reality differently than those who are not entrepreneurs.

For example, why is it that not everybody decides to become entrepreneurs? Why do some quit a job in a large firm with a good salary and nice benefits and become lifestyle entrepreneurs by starting a winery or an art gallery? How do some consider such an option desirable and feasible while others do not? While theory maintains that opportunities exist when there is a competitive imperfection, very few entrepreneurs consider a potential opportunity in those terms.

Let’s all be informed that Entrepreneurship is for anyone willing to take the time and expend the energy. It does not necessarily belong to elites in our communities. It requires the combination of some level of commitment, skills, and desire to succeed.

Entrepreneurs are both men and women. They come in every color of skin and ethnic variety. They are both young and old. They are geniuses and the not-so-bright. Anyone at all with a sane mind can be an entrepreneur. Anyone with or without money can be a successful entrepreneur depending on one’s understanding and definition of success.

Successful Entrepreneurial Story

Sara Blakely, Founder of Spanx

Sara Blakely is an American businesswoman and philanthropist. She had a humble beginning. She was a fax machine salesperson who struggled to find pantyhose that didn’t roll down her legs. In 2000, she invested her life savings of $5,000 to develop a footless pantyhose, Spanx.

Initially, she faced rejection from manufacturers and investors. Undeterred, she persisted, even going door-to-door to sell her product. Her big break came when Neiman Marcus agreed to carry Spanx in their stores.

Today, Spanx is a global brand with over $1 billion in annual sales. Blakely is one of the youngest self-made billionaires in the world.

Lessons Learnt

Identify a problem: Blakely solved a personal problem, creating a product that resonated with many.

Believe in yourself: She invested her own savings and persevered despite initial rejections.

Be persistent: Door-to-door sales and relentless efforts led to her big break.

Innovate and adapt: Spanx expanded beyond pantyhose to become a shapewear and apparel brand.

Sara Blakely’s story shows that with determination, hard work, and a great idea, anyone can turn a small start into a massive success.

It is obvious that Sara had a desire to succeed which is why she kept pushing even when she was rejected numerous times by manufacturers and investors. She took a serious risk of investing all her life savings of $5,000 to develop a footless pantyhose.

This then goes to say that being an entrepreneur requires an extreme intrinsic desire to succeed and a technical education to be a risk taker.